'Backroom deal' to reform CA insurance industry could harm consumers, advocates say

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One advocate said that though the industry's proposals were stopped: 'That doesn't mean there's not going to be attempts to do it again in the future. But hopefully they'll be with the regular legislative process.'

Consumer groups are fighting to the end, saying the California insurance industry is trying to sneak legislation through without a public airing.Consumer groups are fighting to the end, saying the insurance industry is trying to sneak legislation through without a public airing.

Former insurance commissioner and current Congressman John Garamendi warned a backroom deal would be bad news for consumers. "If they succeed, guaranteed, California policy holders are going to once again be screwed by the insurance industry," he says. "Yeah, I mean, it's amazing how these guys basically lie," says Court. "There was a deal on the table. There was a plan on the table. They may not have consummated the deal, but they were clearly talking about a legislative plan.""I think the light, the sun, sunshine, was the best disinfectant here, and I think it kept this deal from happening," Court says. "That doesn't mean there's not going to be attempts to do it again in the future.

 

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